Davis Wright Tremaine – E-Rate Law Advisorhttps://www.eratelaw.com
Latest News & Legal Commentary on the E-Rate ProgramThu, 14 Feb 2019 20:26:04 +0000en-UShourly1https://wordpress.org/?v=4.9.10FCC Bureau Reports on Voice Support Phasedown, Concludes Will Continuehttps://www.eratelaw.com/2017/10/fcc-bureau-reports-on-voice-support-phasedown-concludes-will-continue/
https://www.eratelaw.com/2017/10/fcc-bureau-reports-on-voice-support-phasedown-concludes-will-continue/#respondFri, 06 Oct 2017 13:30:08 +0000http://www.eratelaw.com/?p=1359Continue Reading]]>This past Monday, the FCC’s Wireline Competition Bureau released a Report examining the effects of the phasedown in E-rate support for voice services adopted in the FCC’s 2014 E-rate Modernization Order in order to emphasize the funding of high-speed broadband service. The Order created a phasedown of support for voice services by 20 percent each year commencing in Funding Year (FY) 2015 and continuing through FY 2018, with voice support ending entirely in FY 2019. The 2014 Order also required the Bureau to measure the impact of the phasedown on E-rate applicants generally and on those that had previously requested support only for voice services. The Report breaks its findings down by state, by urban versus rural applicants, and by applicants qualifying for different rates of E-rate support.

Overall, the Report found that support for voice services, which accounted for 1/3 of all E-rate support in FY 2014, constituted only 10 percent of such support in FY 2016. The total amount of support for voice plunged from $708 million in FY 2014 (before the phasedown began) to $259 million in FY 2016 (the second year of the phasedown). The number of applicants seeking support for voice services declined from 24,575 in FY 2014 to 18,884 in FY 2016. But the Report also found that a significant majority (71 percent) of applicants who received only voice service support in FY 2014 continue to receive E-rate support for voice and other services. Only 12 percent of FY 2014 applicants did not apply for any E-rate support in FY 2016.

Several industry parties, including T-Mobile, NTCA and TDS, have asked the FCC to consider maintaining E-rate voice discounts beyond FY 2018. But the Report states that unless the FCC acts, “the phasedown will continue until no funding is available for voice services in funding year 2019.”

]]>https://www.eratelaw.com/2017/10/fcc-bureau-reports-on-voice-support-phasedown-concludes-will-continue/feed/0Rosenworcel Nominated for New FCC Termhttps://www.eratelaw.com/2017/06/rosenworcel-nominated-for-new-fcc-term/
https://www.eratelaw.com/2017/06/rosenworcel-nominated-for-new-fcc-term/#respondFri, 16 Jun 2017 14:02:39 +0000http://www.eratelaw.com/?p=1346Continue Reading]]>On June 13, the White House announced that Jessica Rosenworcel, who served as an FCC commissioner from 2012 until her term expired on Dec. 31, 2016, will be nominated to a new term at the agency. Rosenworcel, a Democrat, has been a strong supporter of the E-rate program, and of broader efforts to close the digital divide including what she coined “the homework gap” through increased broadband deployment utilizing the universal service program.

It is not immediately clear whether Rosenworcel will be nominated to replace Commissioner Mignon Clyburn, the sole Democrat now on the FCC whose term expires on June 30 (but who may serve until the end of this year if her seat is not filled beforehand), or whether her nomination will fill the other vacant Democratic seat on the Commission. The FCC now has only three sitting commissioners— Chairman Ajit Pai and Michael O’Rielly, both Republicans, and Clyburn. The other two seats remain vacant, giving Republicans a 2-1 majority and a bare quorum to conduct business. It is widely reported that Brendan Carr, currently the FCC’s general counsel and a former aide to Chairman Pai, will soon be nominated to fill the vacant Republican seat.

]]>https://www.eratelaw.com/2017/06/rosenworcel-nominated-for-new-fcc-term/feed/0FCC Chairman Rebukes USAC on E-Rate Administrationhttps://www.eratelaw.com/2017/04/fcc-chairman-rebukes-usac-on-e-rate-administration/
https://www.eratelaw.com/2017/04/fcc-chairman-rebukes-usac-on-e-rate-administration/#respondMon, 24 Apr 2017 14:07:44 +0000http://www.eratelaw.com/?p=1331Continue Reading]]>On April 18, FCC Chairman Ajit Pai sent an unusually stern and accusatory letter to USAC CEO Chris Henderson, alleging “serious flaws” and lack of transparency in USAC’s administration of the E-rate program, and declaring that “the current state of affairs is unacceptable.” The principal focus of Chairman Pai’s criticism is USAC’s roll-out of the online E-Rate Productivity Center (EPC), designed as “an Internet portal that every school or library seeking E-Rate funding had to use for purposes of their applications” that would “make the E-Rate process fast, simple, and efficient.” Chairman Pai asserts that “things have not gone according to plan,” in that the EPC was to be fully operational for applicants by the beginning of the funding year 2016 filing window but “is still not adequately functional . . . For example, the entire invoice system remains in the legacy IT system and will remain there until late summer.” He charges that “EPC implementation issues have created major headaches for applicants requesting E-Rate funding,” and adds that the cost estimate for EPC “is proving to be far understated,” already exceeding its $19 million estimate by over $11 million, and that new estimates may exceed $60 million.

Chairman Pai continued that “compounding these system failures is the lack of full transparency with the Commission,” charging that “USAC has not fully apprised the Commission about program issues that directly and materially affect applicants, such as system outages during critical application periods.” Specifically, he says that last October USAC failed to notify the FCC of a debilitating problem in USAC’s Invoice Deadline Extension Tool, leaving it to the Commission’s Wireline Competition Bureau to learn of it from E-rate stakeholders.

Chairman Pai’s letter closes by expressing support for the E-rate program, but adds: “the program’s mission can be achieved only with proper administration. The problems I’ve identified have persisted and have plagued schools and libraries for too long; we must solve them, and soon.” He calls for Mr. Henderson to respond with USAC’s plan to address these issues by May 18.